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Jackie
i can see that you have experience with doing highest price and Highest downpayment HBS. which of the two methods do you feel brings the greatest number of bidders?Have you ever done a combo– where bidders can either bid for highest price or downpayment or does the HBS need to be one of the two (price/downpayment) at the onset?
will the highest downpayment work in high price markets like california?
Both methods bring a lot of bidders. YOu’ll get more bidders for the highest down payment, but even when you do that, you will have some people who ask what if I pay cash
I have done highest bidder sales on $5,000,000 houses. But, my starting bid was way below market
In california, the big problem is getting the option price low enough. If you can do that, you will sell the house
Too many people in california use their house as an ATM machine. As soon as it gets a little equity, they refinance to pay off credit cards. So there are more upside down houses in California than any other state.
If you can get the option price low enough, you can sell the house with a highest bidder sale… even in california
listen to my subject to deals done right conference calll
ideally, YOU should stay in the middle of the deal to collect payments from buyer and make payments to underlying loan if there is one or any extra payment to the seller (minus your spread of course)
you would be protecting both buyer and seller interest by staying in the middle
i have heard of many horror stories when you just assign the contract to your buyer. YOu should not do that.
I know of a guy here in southern california who has done 6 HBS, 5 sucessful sales. he said that he is getting between 92-94% of what he feels is true market value.
If that is the case, I would need to option/control at probably no more than 85% of true market value for a decent profit margin. I would take a 5-8% profit margin on $300k and up homes any day of the week.
hmm, hard to get homes that low of FMV unless the home needs lots of work. due to the severe housing shortage here, homes are getting multiple offers within days of going on the market, often selling in some areas more than asking price. In such a situation, could i offer to split the profit anything over say 80-85% of FMV with a seller?
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